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Q.What home based business deductions should I avoid?
A.When you own a home based business, you must be careful only to deduct those expenses actually related to the operation of your business.
Do NOT deduct:
- all, or most of, the cost of operating your personal residence;
- payments made to children who performed chores around the house;
- excessive automobile expenses when the automobile is used for both business and personal use; and
- equipment expenses when the equipment is used for both business and personal use ((e.g., DVD player or CD player).
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this web site is not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed on a taxpayer under the U.S. Internal Revenue Service.
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